Systematic Withdrawal Plan - SWP

AAA

DEFINITION of 'Systematic Withdrawal Plan - SWP'

A service offered by a mutual fund that provides a specific payout amount to the shareholder at predetermined intervals, generally monthly, quarterly, semiannually or annually.

INVESTOPEDIA EXPLAINS 'Systematic Withdrawal Plan - SWP'

Three main reasons for using SWPs are to meet living requirements (usually when retired), for tax planning purposes, or to comply with mandatory retirement plan withdrawal rules after reaching age 70.5.

RELATED TERMS
  1. Withdrawal Plan

    1) A payment structure arranged with a mutual fund in which the ...
  2. Redemption Suspension

    A provision on a hedge fund preventing the withdrawal from the ...
  3. Sequence Risk

    The risk of receiving lower or negative returns early in a period ...
  4. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  5. Redemption

    The return of an investor's principal in a fixed income security, ...
  6. Bear Fund

    A mutual fund designed to provide higher returns when the market ...
Related Articles
  1. 5 Ways To Fund Your Retirement
    Retirement

    5 Ways To Fund Your Retirement

  2. Substantially Equal Periodic Payment ...
    Retirement

    Substantially Equal Periodic Payment ...

  3. 3 Ways To Make Your Retirement Funds ...
    Retirement

    3 Ways To Make Your Retirement Funds ...

  4. 9 Penalty-Free IRA Withdrawals
    Taxes

    9 Penalty-Free IRA Withdrawals

comments powered by Disqus
Hot Definitions
  1. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  2. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  3. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
Trading Center